In the report, the association wants the government to pursue the Vehicle End of Life policy that was first brought up in 2009. When first proposed, the policy required owners of vehicles that are aged 15 years or older to bring them for mandatory annual inspections as a requirement for road tax renewal. Failure to pass the inspection will require the vehicle to be repaired until it is able to, as opposed to being scrapped immediately as is the case in Singapore.

The policy was scheduled to be implemented in 2014, but was rejected due to an unfavourable response from the public, with minister of international trade and industry Datuk Seri Mustapa Mohamed saying at the time that “the public is not ready” for it. Later on in 2015, the Malaysia Automotive Institute (MAI) suggested the policy be changed to follow a Cash for Clunkers scrappage scheme.

The new proposal would allow owners of vehicles aged 10 years or more to obtain a rebate of up to RM5,000 when they trade in their vehicles (regardless of brand) for a new one from any local OEM producer. Proton offered a scrappage scheme of a similar nature with the Proton Xchange Programme in 2007.

This incentive-based scrappage scheme looks set to be introduced, although an official deadline has not been set. Last year, Malaysian transport minister Datuk Seri Liow Tiong Lai said such a policy is important because the older a vehicle is, more issues or problems arise, and that a study on the policy was now at its final stage.

“Currently, there are about 28 million cars registered, but many of these vehicles are not roadworthy anymore,” said Peda advisor Datuk Armin Baniaz Pahamin. He added that vehicle scrappage schemes are already being practised in developed countries like Singapore, and is a big factor for generating new car sales.

“The government must be willing to address the issue in the next National Automotive Policy (NAP) review as the market is already matured,” he noted. Do you agree with the implementation of a Vehicle End of Life policy in Malaysia? Share with us your thoughts in the comments below.

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.